JAKARTA. PT MD Pictures Tbk (FILM) announced the provision of a guarantee in the form of an IDR 49 billion deposits to cover the debt owned by its parent company, PT MD Graha Utama.
Venkatachari Soundararajan, FILM Director, stated that the said decision had gained approval from the Extraordinary General Shareholders Meeting in 2020. “It was approved during the Extraordinary General Shareholders Meeting,” Soundararajan said in information disclosure of Indonesia Stock Exchange.
Soundararajan further explained that the said guarantee was taken from the internal funds of FILM despite its diminishing cash and cash equivalents.
According to idnfinancials.com data, FILM owns cash and cash equivalent worth IDR 116.98 billion in September 2020. Then, compared to the same period in 2019, the company’s cash and cash equivalents were experiencing a 34.39% decline year-on-year (yoy).
To provide more information, PT MD Graha Utama controlled FILM by owning 45.02% of its shares as of September 30, 2020. Meanwhile, PT MD Global Media has 40.63% of shares, public investors 13.71%, and the remaining portions belong to the company’s management. (KR/ZH)